1

BHEL – AN OVERVIEW
Bharat Heavy Electricals limited (BHEL) is the largest engineering and
manufacturing enterprise in India in the energy-related/infrastructure sector, today.
BHEL was established more than 40 years ago, ushering in the indigenous Heavy
Electrical Equipment industry in India - a dream that has been more than realized
with a well-recognized track record of performance. The company has been earning
profits continuously since 1971-72 and paying dividends since 1976-77.

BHEL manufactures over 180 products under 30 major product groups and caters
to core sectors of the Indian Economy viz., Power Generation & Transmission,
Industry, Transportation, Telecommunication, Renewable Energy, etc. The wide
network of BHEL's 14 manufacturing divisions, four Power Sector regional centres,
over 100 project sites, eight service centres and 18 regional offices, enables the
Company to promptly serve its customers and provide them with suitable products,
systems and services -- efficiently and at competitive prices. The high level of
quality & reliability of its products is due to the emphasis on design, engineering and
manufacturing to international standards by acquiring and adapting some of the best
technologies from leading companies in the world, together with technologies
developed in its own R&D centres.

BHEL has acquired certifications to Quality Management Systems (ISO 9001),

Environmental Management Systems (ISO 14001) and Occupational Health &
Safety Management Systems (OHSAS 18001) and is also well on its journey
towards Total Quality Management.

BHEL has

 Installed equipment for over 90,000 MW of power generation for Utilities, Captive
and Industrial users.
 Supplied over 2, 25,000 MVA transformer capacity and other equipment in
Transmission & Distribution network up to 400 kV (AC & DC).
 Supplied over 25,000 motors with Drive Control System to Power projects,
Petrochemicals, Refineries, steel, Aluminum, Fertilizer, Cement plants, etc.
 Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway
network.
 Supplied over one million Valves to Power Plants and other Industries.

BHEL’s operations are organized around three business sectors, namely Power,
Industry – including Transmission, Transportation, Telecommunication &
Renewable Energy – and Business. This enables BHEL to have a strong customer
orientation, to be sensitive to his needs and respond quickly to the changes in the
market.
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BHEL’s vision is to become a world – class engineering enterprise committed to

enhancing stakeholder value. The company is striving to give shape to its
aspirations and fulfill the expectations of the country to become a global player.

The greatest strength of BHEL is its highly skilled and committed 42,600
employees. Every employee is given an equal opportunity to develop himself and
grown in his career. Continuous training and retraining, career planning, a positive
work culture and participative style of management – all these have engendered
development of a committed and motivated workforce setting new benchmarks in
terms of productivity, quality and responsiveness.

VISION & MISSION OF BHEL

PRODUCT PROFILE of BHEL

Established in the late 50’s, Bharat Heavy Electricals Limited (BHEL) is, today, a
name to reckon with in the industrial world. It is the largest engineering and
manufacturing enterprise of its kind in India and one of the leading international
companies in the power field. BHEL offers over 180 products and provides systems
 3

and services to meet the needs of core sectors like: power, transmission, industry,
oil & gas, non – conventional energy sources and telecommunication. A wide –
spread network comprising 14 manufacturing divisions, 8 service centres, 4 power
sector regional centres, 18 regional offices, besides a large number of project sites
spread all over India and abroad, enables BHEL to be close to its customers and
cater to their specialized needs with the total solutions – efficiently and
economically. An ISO 9000 certification has given the company international
recognition for its commitment towards quality. With an export presence in more
than 60 countries, BHEL is truly India’s industrial ambassador to the world.

BHEL has joined the “Global Compact” of United Nations and has committed itself
to support it and the set of core values enshrined in its ten principles. The “Global
Compact” is a partnership between the United Nations, the business community,
international labour and NGO’s. It provides a forum for them to work together and
improve corporate practices through co-operation rather than confrontation.

Principles of the “Global Compact”

Human Rights

1. Business should support and respect the protection of internationally

proclaimed human rights; and
2. Make sure they are not complicit in human rights abuses

LABOUR STANDARDS

3. Business should uphold the freedom of association and the effective

recognition of the right to collective bargaining;
4. The elimination of all forms of forces and compulsory labour;
5. The effective abolition of child labour; and
6. Eliminate discrimination

ENVIRONMENT

7. Business should support a precautionary approach to environmental

challenges;
8. Undertake initiatives to promote greater environmental responsibility;
9. Encourage the development and diffusion of environmentally friendly
technologies.

ANTI CORRUPTION

10.Business should work against all forms of corruption, including extortion

and bribery.
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QUALITY POLICY OF BHEL

In its quest to be World-class, BHEL pursues Continual Improvement in the Quality
of its Products, services and Performance leading to Total Customer Satisfaction
and Business Growth through dedication, commitment and team work of all
employees.

BHEL’s contributions towards Corporate Social Responsibility till date include

adoption of villages, free medical camps/charitable dispensaries, schools for the
underprivileged and handicapped, children, ban on child labour, disaster/natural
calamity aid, employment for handicapped, widow resettlement, employment for ex-
servicemen, irrigation using treated sewage, pollution checking camps, plantation of
millions of trees, energy saving and conservation of natural resources through
environmental management.

BHEL shares the growing concern on issues related to Environment and

Occupational Health & Safety (OHS), and is committed to protecting environment in
and around its own establishment, and to providing safe and healthy environment to
all its employees. For fulfilling these obligations, a Health, Safety & Environmental
Policy has been formulated and implemented through management systems.

In recognition of this, BHEL has been awarded the ISO 14001 Environment
Management Systems Certification and OHSAS 18001 Occupational Health &
Safety Management Systems Certification from M/s Det Norske Veritas (DNV).
Under UNDP programme for specialized services in the area of environment, BHEL
has set up a Pollution Control research Institute (PCRI). BHEL also has a Model
Centre for Occupational Health Services at Trichy, which is a pioneer in this field in
India. Today it offers a wide range of occupational health care as well as expertise
in work environment monitoring, toxicology, ergonomics and in organization of OHS
to multitude of industries for different sectors in India. Few ILO sponsored
candidates from African countries have undergone training at this Model centre.

BHEL is a member of CORE (Corporate Roundtable on Development of Strategies

for Environment) launched by The Energy Research Institute (TERI). CORE is
envisaged as a means to facilitate a proactive and a catalytic role for industry in
addressing the environmental problems plaguing India and helping the industry
towards sustainability paradigm. CORE is now a partner organization to the
WBCSD (World Business Council for Sustainable Development). It has signed a
memorandum of understanding with WBCSD, now called as CORE – BCSD, India.
Interfaces between companies such as BHEL, TERI and the WBCSD would provide
an important link to address issues as sustainable development at a global level and
to learn and exchange experience of the participating companies.
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PROJECT ENGINEERING MANAGEMENT (PEM)

DIVISION
Project Engineering Management (PEM) division is BHEL’s power plant “system
integrator”, a nodal agency in BHEL providing total engineering solutions for power
projects, enabling BHEL to offer complete Engineering, Procurement and
construction (EPC) services.

In 1947, BHEL set up its engineering consultancy wing under the name
Consultancy Services Division (CSD) to address the market demand for turnkey
services in power and related areas. In 1977, CSD was re-christened as Projects
Engineering Division (PED). Since 1984, it has been known as Project Engineering
Management (PEM).

PEM’s experience of over 200 coal based and gas based power stations, installed
in India and abroad up to 500 MW unit rating, totaling more than 66,000 MW, makes
it India’s largest power plant engineering and design organisation.

PEM – At the CORE of the CORE

PEM coordinates with all the agencies involved in the setting up of the power plant
and smoothly integrates all the requirement s of manufacturing, fabrication, erection,
commissioning, operations and maintenance, right at the engineering

Customer
Consultan National
t Bodies

Contract- Project
Project/Site
ing Engineering Management
Agencies Management
Quality/Inspectio
n
BHEL Mfg.
Agencies
Units Balance of
Plant
Vendors
and design stage.
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FINANCIAL STRUCTURE

HEAD
PEM

Head(s)
Head(s) Head(s) Head Project
Engineering Proposal Procurement Coordination Head Quality,
& Commercial LRP, IT &
Vendor
Electrical Development
Systems Product
Groups
Head Human
Mechanical Resource
Systems Projects
Engineering
Head Finance
Piping & Layout
Mechanical
Head
Vigilance
Mechanical
Auxiliaries

Civil

Control &
Instrumentation

CCP Engg.

STRENGHTS
• Capability to handle projects on turnkey / EPC basis.
• Wide range of engineering capabilities.
• Capability to design to national and international codes and standards – BS,
DIN, ASME, API, IBR, EJMA, IEC, VDE, IEEE.
• Varied experience with national and international consultants.
• Pool of experienced human resources.
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• Over 550 qualified and registered vendors / sub-contractors.

• Engineering and Design Office with adequate modeling, analysis and design
software.
• Infrastructure of servers, engineering workstations, LAN, high brand width
external connectivity for e-mail, internet and data transfer.

RANGE OF CAPABILITIES
Concept stage

• Feasibility Studies
• Detailed Project Reports (DPR)

Bid Preparation

• Proposal Engineering
• Technical Engineering

Project Engineering

• Basic Design
• System Design
• Station Engineering

Development

• Techno-Economic Studies
• Plant Optimization
• Technology up-gradation / absorption

Contracts Management

• Project Engineering Coordination

Procurement Support

• Engineering & Procurement of Balance of Plant System

Engineering Support to Site

• Erection and Commissioning support

• Trouble Shooting

Renovation, modernization & repowering of power plant

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DEPARTMENTS IN THE PEM DIVISION OF BHEL

• Project Service Group (PSG)
• Material Management (MM)
• Engineering :
a. Control & Information (C & I )
b. Electrical
c. CCP Engineering

• Mechanical :
a. Mechanical Auxiliaries (MAX)
b. Mechanical Piping & Layout (MPL)
c. Mechanical Structural Engineering (MSE)
d. Q – Quality, VD – Vendor, MR
• Proposal Engineering
• Human resources
• Finance
• IT & Management Services

MANPOWER IN BHEL (PEM)

Executives – 302

Supervisors – 67

Artisans ( non executives) – 0

Supervisory technical staff – 23

Clerikal – 21

Unskilled worker/skilled workers – 14

Ets – 20

Sts – 28

Total _ 475

AVERAGE AGE OF THE WOKERS – 47

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HUMAN RESOURCE AND ITS MANAGEMENT, i.e.,

HRM
HUMAN RESOURCE

Organizations are made up of people and function through people. Without

people organizations cannot exist. The resources of men, money, materials, and
machinery are collected, coordinated and utilized through people. These
resources by themselves cannot fulfill the objectives of an organization. Without
united human efforts, no organization can achieve its goals. All the activities of
an organization are initiated and completed by the persons who make up the
organization. Therefore, people are the most significant resource of any
organization. This resource is called human resource and it is the most important
factor of production. According to L.F.Urwick, “business houses are made or
broken in the long run not by markets or capital, patents or equipment but by
men.”

From the national viewpoint, human resources may be defined as, “the
knowledge, skills, creative abilities, talents and aptitudes obtained in the
population.” From the viewpoint of an organization, human resources represent the
people at work. According to Jucius, human resources or human factors refer to “a
whole consisting of inter-related, inter-dependent and interacting physiological,
psychological, sociological and ethical components.” Thus, human resources
represent the quantitative and qualitative measurement of the workforce required in
an organization.

Human resources are characterised by the following features:

i) Human resources of an organization are the product of their biological inheritance

and interactions with the environment. Family relationships, religious influences,
caste or racial background, educational accomplishments and organizational
climate influence the attitudes, behaviour, and performance of human beings.

ii) Human resources are dynamic and behave differently. They react to the same
situation in quite different ways. It is, therefore, very difficult to predict human
behaviour.

ii) Human resources are heterogeneous. They consist of a large number of

individuals each having a unique personality, different needs, attitudes and
values. Each has his own physical and psychological traits. Most of the problems
of an organization are people-related problems.
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iv) Human resources are the most important element in organization. The effective
utilisation of all other resources depends upon the quality of human resources.

v) Human resources have the greatest potential to develop and grow provided the
right climate is provided to them. An organization can survive and grow if it has
the right people at the right time working at right jobs.

HUMAN RESOURCE MANAGEMENT (HRM)

Human Resource Management (HRM) may be defined as a set of policies,

practices and programmes designed to maximize both personal and organizational
goals. It is the process of binding people and organizations together so that the
objectives of each are achieved. According to Flippo, Human resource
management is “the planning, organizing, directing, and controlling of the
procurement, development, compensation, integration, maintenance, and
reproduction of human resources to the end that individual, organizational and
societal objectives are accomplished.”

According to National Institute of Personnel Management of India, “human

resource management is that part of management concerned with people at work
and with their relationships within the organization. It seeks to bring together men
and women who make up[ an enterprise, enabling each to make his own best
contribution to its success both as an individual and as a member of a working
group.”

Scott and others have defined as follows: “human resource management is that
branch of management which is responsible on a staff basis for concentrating on
those aspects of relationship of management to employees and employees and with
the development of the individual and the group. The objective is to attain maximum
individual development, desirable working relationship between employers and
employees, and employees and employees, and effectively moulding of human
resources as contrasted with physical resources.”

Human resource management is known by different names, e.g., personnel

management, manpower management, personnel administration, staff
management, etc.
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CHARACTERISTICS OF HRM
On the basis of the definitions given above, the following features of human
resource management can be identified:

1. Comprehensive function: HRM is concerned with managing people at

work. It covers all types of people at all levels in the organization. It applies to
workers, supervisors, officers, managers and other types of personnel.

2. People-oriented: HRM is concerned with employees as individuals as

well as groups. It is the task of dealing with human relationships within an
organization.

3. Action-oriented: HRM focuses on action rather than on record-keeping

or procedures. It stresses the solution of human resource problems to achieve
both organizational objectives and employees’ personal goals.

4. Development-oriented: HRM is concerned with developing potential of

employees so that they get maximum satisfaction from their work and give their
bets efforts to the organization. It takes into account the personality, interests,
opportunities and capacities of employees for this purpose. It seeks to help the
employees to realize their full potential.

5. Future-oriented: HRM is concerned with helping an organization achieve

its objectives in the future by providing for component and well-motivated
employees. It attempts to obtain willing cooperation of people for the attainment
of the desired objectives.

6. Science as well as Art: HRM is a science as it contains an organized

body of knowledge consisting of principles and techniques. It is also an art
because it involves application of theoretical knowledge to the problems of
human resources.
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7. Staff function: The function of human resource management is advisory

in nature. Human resource managers do not manufacture or sell goods but they
do contribute to the success and growth of an organization by advising the
operating departments on human resource matters.

8. Pervasive function: HRM is inherent in all organizations and at all levels.

It is not confined to industry alone. It is equally useful and necessary in
government, armed forces, sports organization etc. It permeates all the functional
areas, e.g., production, marketing, finance, research, etc. Recruitment, selection,
development and utilisation of people is an integral part any organized effort.

9. Challenging function: Managing of human resources is a challenging

job due to the dynamic nature of people. People have sentiments and emotions
so they cannot be treated like machines. It is, therefore, necessary to handle
them tactfully. It is not simply managing people but administering a social
system.

10. Interdisciplinary: HRM involves application of knowledge drawn from several

disciplines like sociology, anthropology, psychology, economics, etc. In order to
deal with human problems effectively, a manager must depend upon such
knowledge.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

The functions are common to all organizations though every organization may have
its own human resource management programme. These functions of human
resource management may broadly be classified into two categories, viz. ,

(1) Managerial Functions: managing people is the essence of being a manager.

Like other mangers, a human resource manager performs the functions of
planning, organizing, directing and controlling.
• PLANNING: A plan is predetermined course of action. Planning is the
process of deciding the goals and formulating policies and programmes to
achieve the goals. Human Resource Management involves forecasting
needs for human resources, predicting trends in labour market, wages, union
demands, etc. and their impact on the organization. Planning bridges the gap
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between where we are and where we want to go. Planning is the means to
manage change.

• ORGANISING: In order to implement the plans, a sound organization

structure is required. Organizing is the process of allocating tasks among the
members of the group, establishing authority-responsibility relationships
among them and integrating their activities towards the common objectives.
The right organization structure is the foundation of effective management
because without it the best performance in all other areas will be ineffective.

• DIRECTING: It is the process of motivating, activating, leading and

supervising people. It includes all those activities by which a manager
influences the actions of subordinates. It involves getting others to act after
all preparations concerned with initiating action. A manager can tap the
maximum potential of employees through proper direction. Directing also
helps in building sound individual and human relations in the organisaton.

• CONTROLLING: It implies checking, verifying and regulating to ensure

that everything occurs in conformity with the plans adopted and the
instructions issued. Such monitoring helps to minimise the gap between
desired results and actual performance. Controlling the management of
human resources involves auditing training programmes, analyzing labour
turnover records, directing morale surveys, conducting separation interviews
and such other means.

(2) Operative Functions: The operative or service functions of human resource

management are the tasks which are entrusted to the human resource
department. These functions are concerned with specific activities of procuring,
developing, compensating and maintaining an efficient work force.
i) PROCUREMENT FUNCTION. It is concerned with securing and employing the
right kind and proper number of people required accomplishing the
organizational objectives. It consists of the following activities:
(a) Job Analysis. It is the process of studying in details the operations and
responsibilities involved in a job so as to identify the nature and level of
human resources required to perform the job effectively. Job descriptions
and job specifications are prepared with the help of information provided
by job analysis.
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(b) Human Resource Planning. It is the process of estimating the present and
future manpower requirements of the organisation, preparing inventory of
present manpower and formulating action programmes to bridge the gaps
in manpower.
(c) Recruitment. It is the process of searching for required human resource
and stimulating them to apply for jobs in the organisation. A proper
balance should be maintained between the internal and external sources
of recruitment.
(d) Selection. It implies judging the suitability of different candidates for jobs
in the organisation and choosing the most appropriate people.
(e) Placement. It means assigning suitable jobs to the selected candidates so
as to match employee qualifications with job requirements.
(f) Induction or Orientation. It involves familiarising the new employees with
the company, the work environment and the existing employees so that
the new people feel at home and can start work confidently.

ii) DEVELOPMENT FUNCTION. Human resource development is the process of

improving the knowledge, skills, aptitudes, and values of employees so that
they can perform the present and future jobs more effectively. This function
comprises the following activities:
a) Performance and Potential Appraisal. It implies
systematic evaluation of employees with respect to their performance on
the job and their potential for development.
b) Training. It is the process by which employees learn
knowledge, skills, and attitudes to further organizational and personal
goals.
c) Executive Development. It is the process of developing
managerial talent through appropriate programmes.
d) Career Planning and Development. It involves planning
the career of employees and implementing career plans so as to fulfill the
career aspirations of people. It involves mobility of human resource through
promotions and transfers.

iii) COMPENSATION FUNCTIONS. It refers to providing equitable and fair

remuneration to employees for their contribution to the attainment of
organisational objectives. It consists of the following activities:
a) Job Evaluation. It is the process of determining the
relative worth of a job.
b) Wage and Salary Administration. It implies developing
and operating a suitable wage and salary programme. Surveys are
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conducted to determine wage and salary structure for various jobs in the
organisation.
c) Bonus. It involves payment of bonus under the
payment of Bonus Act, 1965 as well as non-statutory bonus and other
incentives.

iv) INTEGRATION FUNCTION. It is the process of reconciling the goals of the

organisation with those if its members. Integration involves motivating
employees through various financial and non-financial incentives, providing
job satisfaction, handling employee grievances through formal grievance
procedures, collective bargaining, worker’s participation in management,
conflict resolution, developing sound human relations, employee counseling,
improving quality of work life, etc.

v) MAINTENANCE FUNCTION. It is concerned with protecting and promoting

the physical and mental health of employees. For this purpose, several types
of fringe benefits such as housing, medical aid, educational facilities,
conveyance facilities, etc. are provided to employees. Social security
measures like provident fund, pension, gratuity, maternity benefits,
injury/disablement allowance, group insurance, etc. are also arranged. Health,
safety, and welfare measures are designed to preserve the human resources
of the organisation. Human resource records and research are also important
elements of the maintenance function.

SCOPE OF HUMAN RESOURCE MANAGEMENT

The Indian Institute of Personnel Management has described the scope of human
resource management into the following aspects:

1) The labour or Human Resource Aspect. It is concerned with manpower

planning, recruitment, selection, placement, induction, transfer, promotion,
demotion, termination, training and development, layoff and retrenchment, wage
and salary administration, incentives, productivity, etc.

2) The Welfare Aspect. This aspect is concerned with working conditions and
amenities such as canteens, crèches, rest rooms, lunch rooms, housing,
transport, education, medical help, health and safety, washing facilities,
recreation and cultural facilities, etc.
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3) The Industrial Relations Aspect. This is concerned with the company’s

relations with the employees. It includes union-management relations, joint
consultation, negotiating, collective bargaining, grievance handling, disciplinary
actions, settlement of industrial disputes, etc.

All the above aspects are concerned with human element in industry as distinct from
the mechanical element.

MEASURES TO SPEED-UP GROWTH

The following steps may be taken to develop HR management in India:

(i) Institutions such as National Institute of Personnel Management, Kolkata;

Xavier Labour Relations Institute, Jamshedpur; various universities etc.
should develop the right values and attitudes for the growth of HR
management.

(ii) Organisational structure should be so designed as to promote

interdependence and mutuality between line and staff.

(iii) Top management should place the HR department at par with the other
department and assign the same status to HR manager as other
departmental heads.

(iv) The legal and welfare role of HR manager should be adequately

supplemented by human relations and managerial roles.

(v) Job description and job specification for HR manager should be written in
accordance with the latest developments in human resources and
behavioural sciences.
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(vi) Candidates selected for HR job should be provided formal training in

reputed institutions.

(vii) HR managers should enlarge their perception about their role. They should
consider and function as change agents rather than confining themselves
to conventional roles of welfare officer, law officer and canteen supervisor.

(viii) Efforts should be made at all levels to proffessionalise HR management.

QUALITIES OF HUMAN RESOURCE MANAGER

The job of Human Resource Manager is quite complex and challenging. In order to
be successful, several qualities are required in an HR manager. Some of these
qualities are given below:

(1) Educational Qualifications. A Human Resource Manager should possess the

following qualifications:
(a) Degree of recognized university.
(b) Postgraduate degree/diploma in sociology or social work or human
resource management/industrial relations/labour welfare/labour law, or
MBA with specialization in HRM.
(c) Degree in law will be an additional/desirable Qualification.

(2) Personal Attributes. Like any other manager, the human resources manager
requires several personal qualities. Some of these qualities are given below:
(a) Intelligence. This implies the ability to understand; depth of
perception,etc.
(b) Communicative Ability. Command over language, ability to express
correctly, listening skill, ability to explain and interpret policy and
programmes, etc. are elements of communicative skill.
(c) Decisiveness. It means analytical ability, sound judgement, foresight,
etc.
(d) Human Skills. It involves an objective mind tact, ability to discriminate
between right and wrong, insight in human nature, etc.
(e) Teaching Skill. It implies the ability to teach and train employees.
(f) Executive Skills. These refer to ability to implement policies and
programmes speedily and accurately.
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(g) Leadership Skills. These include physical fitness, moral courage,

ability to inspire confidence and to win cooperation, ability, passion for
anonymity, etc.

(3) Training and Experience. Training in industrial psychology, labour

legislation and industrial relations is very useful for a human resource
manager. Experience in an organisation helps him to create a pertinent
approach. To some extent, HRM is an art where practice makes one a
successful manager.

(4) Professional Attitudes. HRM is emerging as a profession. A professional

approach to the management of human resources is required in the global
environment.

ROLE OF HUMAN RESOURCE MANAGER

The role of human resource manager may be analysed as follows:

1. As a Specialist. Human resource manager is an expert. As a specialist, he

advises the heads of different functional departments on various aspects of
human resource management, such as human resource planning, recruitment,
selection, orientation, training, appraisal, etc.

2. As an Information Source. The human resource manager provides valuable

information about labour market, labour laws and other related areas. Such
information is necessary for the formulation of proper policies and procedures
about human resources. He serves as a record keeper and researcher to provide
the required information.

3. As a Change Agent. The human resource manager can serve as an internal

change agent to initiate and spearhead necessary improvements in human
resource practices. As a consultant, he can provide necessary infrastructure and
support for organisational development. He helps in introducing and
implementing major institutional changes in the organisation.

4. As a Controller. The human resource manager assists line managers in effective

implementation of human resource policies and programmes. His advice and
service is essential for monitoring and controlling the progress.

5. As a Liaison Man. Very often the human resource manager is asked to act as a
linking pin between different departments/divisions of an organisation.
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6. As a Housekeeper. The human resource manager looks after the safety, health,
welfare, etc. of employees.

7. As a Fire Fighter. In union-management relations, the human resource manager

act as a shock absorber. He is the management’s defence against trade union
activists. He acts as a trouble shooter.

Thus, the human resource manager plays a variety of roles depending on the needs
of the particular organisation.

HRM in BHEL(PEM)
The Human Resource Management Functions in BHEL consists of the following:

1. Recruitment

2. Probation

3. Contract labor

4. Training

5. Deputation

6. Organization Chart

7. Manpower budget

8. ACR’s

9. Promotion

10. Standard Designation

11. Transfer

12. Outside Employment

13. Resignation

14. Retirement

15. Review at 55yrs.

16. NOC for passport/VISA

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17. Sites overseas

18. Sites within India

19. Leave

20. Punctuality

21. Study leave

22. L.T.C

23. Holiday Homes

24. Medical Facility

25. Pay Fixation Reward

26. Higher Study

27. CDA

The above functions have been described as follows:

1. RECRUITMENT: According to Flippo, “Recruitment is the process of

searching for prospective employees and stimulating and encouraging them to
apply for jobs in an organization.” In the words of Yoder, “Recruitment is a
process to discover the sources of manpower in adequate numbers to facilitate
effective selection of an efficient working force.” Recruitment needs are of three
types – planned, anticipated, and unexpected. Planned needs arise from
changes in organization and retirement policy.

PROCESS OF RECRUITMENT

The recruitment process consists of the following steps:

1. Recruitment Process generally begins when the human resource department

receives requisitions for recruitment from any department of the company. The
human resource requisitions contain details about the position to be filled,
number of persons to be recruited, the duties to be performed, qualifications
required from the candidate, terms and conditions of employment and the time
by which the person should be available for appointment, etc.
 21

2. Locating and developing the sources of required number and type of

employees.

3. Identifying the prospective employees with required characteristics.

4. Communicating the Information about the organization, the job and the terms
and conditions of service.

5. Encouraging the identified candidates to apply for jobs in the organization.

6. Evaluating the effectiveness of recruitment process.

THE RECRUITMENT PROCESS

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HUMAN RECRUITING SELECTING PLACING

RESOURCE REQUIRED QUALIFIED SELECTED
PLANNING PERSONNEL PERSONNEL PERSONNEL
ON JOBS

SEARCH FOR
FINDING AND
PROSPECTIVE EVALUATING
DEVELOPING
EMPLOYEES EFFECTIVENESS
SOURCES OF
(a) Developing OF RECRUITING
POTENTIAL
techniques
EMPLOYEES
(b) Attracting
candidates

TRANSFERRING TO
HUMAN NEW JOB
RESOURCE
RESEARCH
UPGRADING SAME
INTERNAL POSITION
RESOURCES JOB
POSTING PROMOTION TO
HIGHER JOB

EXPERIENCE

EMPLOYEE
REFERALS PROVIDING
INFORMATION
EXTERNAL
RESOURCES ADVERTISING

CLARIFYING
SCOUTING
DOUBTS

SELECTION PROCESS
 23

The selection is the process of choosing the most suitable persons out of all the
applicants. The selection process can be successful if the following conditions are
satisfied:

(a) some one should have the authority to select. This authority comes from the
employment requisition as developed through an analysis of the workload and
wokforce.

(b) There must be some standard of human resource with which applicant can be
compared. In other words, a comprehensive job description and job
specification should be available beforehand.

(c) There must be a sufficient number of applicants from whom the required
number of employees may be selected.

The characteristics we look for while hiring are: the person should be hungry
for success and have a risk taking capacity. He or she must also be able to ‘think-
out-of-box’, learn to live with the stress, be a great team player and have a
cosmopolitan look.

Steps involved in the selection process are as follows:

• Preliminary interview: it is essentially a sorting process in which

prospective candidates are given the necessary information about the
nature of the job and the organization. Necessary information is also elicited
from the candidates about their education, skills, experience, salary
expected, active the candidate is found suitable, he is selected for further
screening. Preliminary interview saves time and efforts of both the
company and the candidate.

• Application Blank : it is a traditional and a widely used device for collecting

information from the candidates. The application form should provide all the
information relevant to selection. Generally, an application form contains the
following information:

(a) Identifying information – name, address, telephone no., etc.

(b) Personal information – age, sex, place of birth, marital status,
dependents, etc.
(c) Physical characteristics – height, weight, eye sight, etc.
(d) Family background
(e) Education – academic, technical and professional.
(f) Experience – job held, employers, duties, performed, salary
drawn, etc.
(g) References
 24

(h) Miscellaneous – extra curricular activities, hobbies, games, and

sports, membership of professional bodies etc.

• Selection test : psychological tests are being increasingly

used in employee selection. A test is a sample of some aspect of an
individual’s attitudes, behaviour and performance. It also provides a
systematic basis for comparing the behaviour, performance and attitudes of
two more persons. Tests are based on the assumption that individuals
differ in their job related traits which can be measured. No test however, is
full proof. Tests are useful when the number of applicants is large. Further,
tests will be useful only when they are properly designed and administered.

• Employment Interview : an interview is a conversation

between two persons. In selection, it involves a personal, observational and
face to face appraisal of candidates for employment. Interview is an
essential element of selection and no selection procedure is complete
without one or more personal interviews. The information collected through
application and test can be cross – checked in the interview.
A selection interview serves three purposes : (a) obtaining information
about the background, education, training, work history and interests of the
candidate; (b) giving information to candidates about the company, the
specific job and human resource policies; and (c) establishing a friendly
relationship between the employer and the candidate so as to work for the
organisation. In practice, however, interviews become a one sided affair
serving only the first purose.

• Medical Examination : applicants who have crossed the above stages

are sent for a physical examination either to the company’s physician or to
a medical officer approved for the purpose. Such examination serves the
following purposes:

1. It determines whether the candidate is physically fit to perform the job.

Those who are physically unfit are rejected.
2. It reveals existing disabilities and provides a record of the employee’s
health at the time of selection. This record will help in settling company’s
liability under the Workmen Compensation Act for claim for an injury.
3. It prevents the employment of people suffering from contagious
diseases.
4. It identifies candidates who are otherwise suitable but require specific
jobs due to physical handicaps and allergies.

• Reference checks: the applicant is asked to mention in his application

form, the names and addresses of two or more persons who know him
well. These may be his previous employers, heads of educational
institutions or public figures. The organisation contacts them by mail or
 25

telephone. They are requested to provide their frank opinion about the
candidate without incurring any liability. They are assured that all the
information given by them will be kept confidential. The opinion of referees
can be useful in judging the future behaviour and performance of a
candidate.

• Final Approval: final approval is given to the candidates. Employment is

offered in the form of an appointment letter mentioning the post, the rank,
the salary grade, the date by which the candidate should join and other
terms and conditions in brief. Appointment is generally made on a
probation of one or two years. After satisfactory performance during this
period, the candidate is finally confirmed in the job on permanent basis or
regularized.

PROBATION: Probationer is an employee who is provisionally employed with a

view to being considered for appointment on the regular establishment of the
company. Unless otherwise provided in the terms of appointment in the terms of
appointment or any other agreement or award, the following rules will govern the
probation and confirmation of employees:

• all employees on first appointment in the service of the company

including employees appointed to a higher grade consequent on promotion or
on the basis of an open selection shall be placed on probation for a period of
one year during which period for confirmation against the regular post.

• the period of probation may be extended at the discretion of the

competent authority, but will not be extended by more than one year save for
exceptional reasons to be recorded in writing.

• every new employee appointed in the company’s service will be issued

with a formal order of confirmation on satisfactory completion of probationary
period or the extended period of probation, as the case may be. The
employee will be considered to be continuing on probation until so confirmed
in writing.

• an order relating to confirmation or extension of probation will normally

be
communicated within one month from the date of completion of the
probationary period or extended period of probation. If, however, for
administrative or other reasons it is not done so, the employee concerned will
be informed of the reasons thereof within the stipulated period of one month.

• if during the probationary period or extended period of probation, the

performance, progress and general conduct of the employee are not found
 26

satisfactory or upto the standard required for the post , his/her services are
liable to be terminated at any time without notice and without assigning any
reason therefore.

• permanent government servants joining BHEL against open

advertisement who retain lien on their substantive posts in their parent
departments the normal probation period of all such employees will be one
year from the date of joining the company. However, after satisfactory
completion of a probationary period of at least three months from the date of
joining the company, any such employee can be permanently absorbed in the
company provided his pay has been fixed under the relevant government
rules applicable to government servants getting absorbed in public sector
undertakings in public interest and provided the employee himself pays the
required contributions towards leave salary and pension to his parent
department till the date of his absorption in BHEL.

3. STANDARD DESIGNATIONS: The following scheme of

standardized designations is applicable to the various levels of Executives of the
company.

a. TOP MANAGEMENT POSTS

Board level

Designations

CHAIRMAN & MANAGING DIRECTOR

DIRECTOR( )

• Other than board level

SG. No. DESIGNATIONS

E9 EXECUTIVE DIRECTOR

E8 GENERAL MANAGER I/C

GENERAL MANAGER ( )

b. OTHER THAN MEDICAL AND SECURITY DEPARTMENTS

 27

SG. No. DESIGNATIONS

E7 ADDL. GENERAL MANAGER( )

E6 SR. DY.GENERAL MANAGER()/

DY.GEN.MANGER/SPECIALIST

E5 SR.MANAGER()/SPECIALIST

E4 MANAGER()

E3 DY.MANAGER()

E2 SR.()OFFICER/ SR.()ENGINEER

E1 ()OFFICER/()ENGINEER

c. MEDICAL DEPARTMENT

SG. No. DESIGNATIONS

General category Specialist category

E1 Medical Officer Medical Officer

E2 Sr.Medical Officer Sr. Medical Officer

E3 Asst.Cheif Medical Officer Asst.Chief medical Officer

(speciality concerned)

E4 Dy. Chief medical officer Dy. CMO(speciality concerned)

E5 CMO(In case head of unit CMO(In case head of unit

Medical) medical)

Sr.DY.CMO(Others in the Sr.DY.CMO(concerned speciality)

same scale Others in the same Scale

E6 CMO( In case head of unit CMO(In case head of medical)

Medical)
Addl. CMO(others in the same Addl. CMO(speciality concerned
 28

E7 Head of medical services Head of medical services

(speciality concerned)

E8 General Manager & Head of

Medical services

4. STANDARD NON-EXECUTIVE DESIGNATIONS:

The following are the standard designations applicable to the various levels of
non - executives of the company:

Category-non supervisors (Technical)

AI Unskilled worker
Sanitary worker gr.II
Catering attendant gr.II

AII Semi skilled worker

Sanitary worker Gr.I
Jamadar
Assistant cook

AIII artisan GR.IV

Draughtsman GR.IV
Lab. Assistant GR.IV
Store keeper Gr.IV

AIV Artisan GR.III

Draughtsman GR.III
Lab asstt.Gr.III
Store keeper GR.III
Operator gr.III

AV Artisan GR.II
Draughtsman GR.II
Lab asstt. GR.II
Store keeper GR.II
Operator GR.II

AVI Artisan GR.I

 29

Draughtsman GR.II
Lab asstt.GR.II
Store Keeper GR.II
Operator GR.II

AVII Technician
Sr. Draughtsman Gr.III
Sr. Lab asstt.Gr. III
Sr. Store keeper Gr.III
Sr. mechanic GR.III
Sr.operator Gr.III

AVIII Sr.Technician
Sr. Draughtsman Gr.II
Sr. Lab asstt.Gr. II
Sr. mechanic GR.II
Sr.operator Gr.II
Sr. Store keeper Gr.II

AIX Master Technician

Sr. Draughtsman Gr.I
Sr. Lab asstt.Gr. I
Sr. mechanic GR.I
Sr.operator Gr.I
Sr. Store keeper Gr.I

AX General technician
General draughtsman
General Artisan
General Draughtsman
General Lab asstt.
General Store keeper
General Operator
General Fireman

AXI Chief technician

Chief draughtsman
Chief Artisan
Chief Draughtsman
Chief Lab asstt.
 30

Chief Store keeper

Chief Operator
Chief Fireman

Category- non supervisory (non technical)

BI Attendant Gr.II
Mali Gr.II
Hospital Attendant Gr.II
Chowkidar

BII Attendant Gr.II

Mali Gr.II
Hospital Attendant Gr.II
Duftary
Security Guard

BIII Clerk
Telephone operator
EDP operator GR.III
Time keeper Gr.III
Security Sub inspector Gr.III
Asstt.Estate Inspector Gr.III

BIV Asstt. Gr.II

Sr. Telephone Operator Gr.II
Receptionist Gr.II
Stenographer
EDP Operator GR.II
Time keeper Gr.II
Asstt.Estate Inspector Gr.II
Sr.Security Guard gr.II

BV Nurse Gr.II

BVI Asstt. Gr.I

Sr. Telephone Operator Gr.I
EDP Operator GR.I
Time keeper Gr.I
Asstt.Estate Inspector Gr.I
 31

Sr.Security Guard gr.I

Receptionist Gr.I
Asstt.cashier

BVII Sr.Asstt.Gr.III
Sr.Planning asstt.Gr.III(Bhopal only)
Personal Asstt.Gr.III
Sr.EDP Operator Gr.III
Sr. Time keeper Gr.III
Sr. Asstt.cashier Gr.III
Sr.Receptionist Gr.III

BVIII Sr.Asstt.Gr.II
Sr.Planning asstt.Gr.II(Bhopal only)
Personal Asstt.Gr.II
Sr.EDP Operator Gr.II
Sr. Time keeper Gr.II
Sr.Receptionist Gr.II

BIX Sr.Asstt.Gr.I
Sr.Planning asstt.Gr.I(Bhopal only)
Personal Asstt.Gr.I
Sr.EDP Operator Gr.I
Sr. Time keeper Gr.I
Sr. Asstt.cashier Gr.I
Sr.Receptionist Gr.I

BX General Asstt.
General Planning asstt. (Bhopal only)
General Personal Asstt.
General EDP Operator
General Time keeper
General Receptionist
General Cashier

BXI Chief Asstt.

 32

Chief Planning asstt. (Bhopal only)

Chief Personal Asstt.
Chief EDP Operator
Chief Time keeper
Chief Receptionist
Chief Cashier
Chief Nurse

Category- Supervisor (technical)

SAI Chargeman
Technician Gr.III
Technical Asstt.Gr.III
Design Asstt.Gr.III
Scientific Asstt.Gr.III
Store Holder Gr.III
Chargeman (purchase)
Lecturer Gr.III
Fire Supervisor Gr.III

SAII Asstt. Foreman

Technician Gr.II
Technical Asstt.Gr.II
Design Asstt.Gr.II
Scientific Asstt.Gr.II
Store Holder Gr.II
Lecturer Gr.II
Fire Supervisor Gr.II

JE Junior Executive

SAIII Foreman
Technician Gr.I
Technical Asstt.Gr.I
Design Asstt.Gr.I
Scientific Asstt.Gr.I
Store Holder Gr.I
Lecturer Gr.I
Fire Supervisor Gr.I
 33

Lecturer Gr.I
Supervisor Horticulture Gr.I

SAIV General Foreman

SAV Executive Foreman

SAVI Sr. Executive Foreman

SAVII General Executive Foreman

Category- Supervisory(non-technical)

SBI Asstt.Office superintendent

Private Secretary Gr.III
Media Asstt.Gr.III
Cashier Gr.III
Accountant
Supervisor Gr.III
Medical Technician Gr.III

SBII Office superintendent

Private Secretary Gr.II
Media Asstt.Gr.II
Cashier Gr.II
Supervisor Gr.II
Medical Technician Gr.II
Sr.Accountant Gr.II/ Accountant

JE Junior Executive

SBIII Sr.Office superintendent

Private Secretary Gr.I
Media Asstt.Gr.I
Cashier Gr.I
Supervisor Gr.I
 34

Medical Technician Gr.I

Sr.Accountant Gr.I/ Accountant
Translator Gr.I

SBIV Chief Supervisor

SBV Executive supervisor

SBVI Sr.Executive Supervisor

SBVII Genl.Executive supervisor

5. Contract labour: a contract labourer is a worker who has

been recruited through Contractors who maintain close links with the sources
of such workers. This source is often used to recruit labour for construction jobs.
The disadvantage of this source is that when the contractor leaves the
organization, people employed through him also go.

6. Promotion policy and rules :

• OBJECTIVES
(a) To provide all employees with broad equality of opportunity in growth
and career prospects.

(b) To ensure fairness, equitability, consistency and uniformity in the matters

of promotion of employees in all the units/divisions of the company.

(c) To recognize and reward employees for their contribution to the growth of
the organisation.

(d) To sustain the high morale of the employees by informing them of the
promotion opportunity existing in the organisation.

• GUIDELINES AND PRINCIPLES

Promotion from one group/cadre to another group/cadre:

It is done on the basis of merit as assessed through a selection process
which may include an appraisal of performance, and test/ interview
 35

designed to determine the employees’ skill, aptitude and abilities for

effective consideration for promotion to the higher group/cadre.
Employees promoted to or within the supervisory cadre or to/within the
executive cadre upto E5 grade will be on probation for a period of one
year.

(b) Promotion within a group/cadre

Employees are eligible for consideration for promotion from a lower grade
to the next higher grade within the same group/cadre on completion of the
number of years of service prescribed in the lower grade and attainment
of satisfactory standards in conduct and performance. The ‘qualifying
period’ for promotion within a group will be notifird by the management
from time to time keeping in view the requirements of the organisation.

(c) ‘Fast Track’ Promotions

With a view to rewarding employees for sustained outstanding
performance, and in order to provide motivation to them for further
improvement, accelerated promotions are considered for eligible
employees on completion of a specified period of service as may be
prescribed for this purpose for each grade.

(d) it may not be possible to ensure advancement/career prospects beyond a

certain point for employees who either do not possess the requisite
qualifications/skill needed for the higher post or are held up for want of
requirements in the higher groups/cadre. Such cases are reviewed and
employees are considered for the higher grade on the completion of 10
years good and effective service provided their conduct and performance
are otherwise satisfactory. This is normally not applicable to the position
of E5 i.e. the Sr.manager’s grade and above.

(e) There may be a certain percentage of employees who do not qualify for
promotion under any of clauses provided above. These are so due to their
consistently ‘poor’ performance and/or other reasons. Such employees
treated under the category ‘drop-outs’ are not eligible for promotion until
there is recorded improvement in their overall performance and conduct.

• RULES AND PROCEDURES

Promotions will be considered by Departmental Promotion Committees(DPCs)

to be constituted at the unit level for various grades falling under the purview
of the unit management. The criteria adopted by the DPC for considering
 36

promotions will broadly include factors such as qualifications, performance,

general suitability and potential for higher responsibility.

In case of promotion from Supervisory cadre to executive cadre, the selection

committee should include a central selection board member on it.

The promotion cases of eligible employees who are transferred after 31 st

march and before June, will be considered by the previous unit, if due for
promotion, during that year. The recommendations of the DPC will be
communicated to the latter unit of issue of orders.

• PREFERENCE FOR SC/ST

The government of India orders issued from time to time relating to
reservations for SC/ST candidates will be observed in so far as these are
applicable in the context of BHEL promotion policy.

• SENIORITY
Seniority as between personnel selected in the same selection shall be
determined in accordance with the order of merit drawn up by the selection
promotion committee and approved by the competent authority.

• DEBARRING
Employees undergoing punishment for specified period shall not be
considered fro promotion during that period.

• Keeping in view the changes in internal

conditions and external conditions, the company may at any time at its
discretion, make any changes in the promotion policy and the rules as stated
herein if it is satisfied that such changes are necessary I the overall interest of
the organisation.

7. Transfer Policy And Benefits :

• POLICY
Every employee of the company is liable for transfer from one
department/section/job within the same unit/division or from one unit/division
of the company to another or from the company to any other government
department/public sector undertaking as and when required by the company
at the discretion of the management.

• HORIZONTAL TRANSFER
 37

Unless selected for a higher position, the transfer of an employee is made in

the same grade and pay as held at the time of transfer (hereinafter referred to
as ‘horizontal transfer’).

• TRANSFER ON SELECTION TO
HIGHER POST AGAINST OPEN ADVERTISEMENT
The employees selected from one unit/division for appointment to higher
posts in another unit/division against open advertisement are entitled to all the
benefits as on horizontal transfer except the grant of disturbance allowance
and payment of bonus. Their pay in the higher post is fixed as on promotion.

• TRANSFER ON SELECTION AS
TRAINEE/APPRENTICE
The employees selected as trainees/apprentices against open advertisement
are governed by the rules on “Entitlements of Departmental Trainees” as
notified from time to time.

8. Training:
Training is the process of increasing the knowledge and skills for doing a
particular job. It is an organized procedure by which people learn knowledge and
skill for a definite purpose. The purpose of training is basically to bridge the gap
between job requirements and present competence of an employee. Training is
aimed at improving the behavior and performance of a person. It is a never
ending or continuous process.

a. IMPORTANCE OF TRAINING

A well – planned and well – executed training programme can provide the
following advantages:
• Higher productivity

• Better Quality of Work

• Less Learning Period

• Cost reduction

• Reduced Supervision

• Low accident rate

• High morale
 38

• Personal growth

• Organisational climate

b. BENEFITS OF TRAINING TO EMPLOYEES

Training is useful to employees in the following ways:

• Self – confidence

• Higher earnings

• Safety

• Adaptability

• Promotion

• New – skills

c. DESIGNING A TRAINING PROGRAMME

In order to achieve the training objectives, an appropriate training policy is

necessary. A training policy represents the commitment of top management to
employee training. It consists to rules and procedures concerning training. A
training policy is required:
• To indicate the company’s intention to develop its employees;

• To guide the design and implementation of training programmes;

• To identify the critical areas where training is to be given on a priority basis;

and

• To provide appropriate opportunities to employees for their own betterment.

A sound training policy clearly defines the following issues:

• The results expected to be achieved through training.

• The responsibility for the training function.

 39

• The priorities for training.

• The type of training required.

• The time and place of training.

• The payments to be made to employees during the training period.

• The outside agencies to be associated with the training.

• Relationship of training to the company’s labour policy.

9. Terms and conditions of deputation:

The period of deputation will initially be for two years from the date on which he
handed over charge of the post in the parent and end on the date on which he
assures charge of the post in parent department.

• Pay (for non – top posts)

He will have the option either to get his pay fixed in the deputation post
under the operation of normal government rules or to draw pay of the post
held by him in his parent department plus a deputation (duty) allowance in
accordance with and subject to the conditions laid – down in ministry of
finance OM no. F.I(II)-B-III(P) 75 dated ) 07.11.1975 and OM no.6/30/86 –
estt.pay-II) dated 9th December, 1986 of ministry of personnel, public
grievances & pension, department of personnel & training as further
amended/modified from time to time.

• Pay (for top posts)

His pay in the deputation post carrying a scale of pay of Rs.
will be fixed in the accordance with
the provisions of the ministry of finance O.M. no. 2(104)/77-BPE(GM-I)
dated 17.12.1977.

• Joining time and joining time pay

Pay during joining time, both on transfer to company service and reversion
therefrom to be regulated under the Rules of the Central government and
paid by the company, period of joining time being regulated under the same
rules.

• General
 40

He should not be transferred to another post or entrusted with any

additional charge or promoted to an ex – cadre/higher post by the company
without obtaining prior approval of the competent authority in the lending
department.

• Over payment if any made by the company will be recovered from the
officer even after the expiry of the terms of deputation.

10. Manpower:

Executives – 302

Supervisors – 67

Artisans ( non executives) – 0

Supervisory technical staff – 23

Clerikal – 21

Unskilled worker/skilled workers – 14

Ets – 20

Sts – 28

Total _ 475

AVERAGE AGE OF THE WOKERS – 47

11. Dearness allowance

• It is granted to compensate the price increase above CPI 1099 points, to

which the revised salary grades relate. The payment of D.A is based on slab
basis related to the percentage increase over quarterly average of AICPI
1099.

• The periodically and effective dates of revision will be as under:-

i. Executives /supervisors/employees in equivalent grades and
employees in AX/BX/AXI/BXI grades
 41

quarterly average date of effect

Sep – nov 25th dec

Dec – feb 25th march
March – may 25th june
June – aug 25th sept

ii. employees in grade AVI/BVI &below

Quarterly average date of effect

Aug – oct 25th nov

Nov – jan 25th feb
Feb – april 25th may
May – july 25th aug

• In determining the average consumer price index the fraction below 0.5 will
be ignored and 0.5 and above will be rounded off to the next higher integer.

• For computation of D.A., 50 paise and above to be rounded off to the next
rupee and less than 50 paise to be ignored.

• In respect of employees upto AVI/BVI grades, asum of Rs.26/- p.m. is to be

added to the amount worked out on the basis of quarterly average upto
AICPI 1099.

• D.A. on HPL

D.A. during half pay leave is to be computed with reference to the basic pay
actually drawn. In other words, in such cases D.A. will be computed on the
reduced pay only.

12. House rent allowance & lease facility

• Rates of house rent allowance (HRA)

 42

i. Payment of HRA at the above rates would be subject to the

provision that the employee will have to bear 10% of their pay towards
house rent. Employees who live in houses owned by themselves or their
spouses will be paid HRA at the above rates depending upon the rateable
values assessed by the municipal authority of the area where the house is
situated provided 10% of pay is borne by them.

ii. in case the employee is not in apposition to produce rent receipt or

where the rateable value of the self occupied portion of house or the rent
paid by him for the rented accommodation is either nominal or
insignificant, he would be paid HRA in accordance with the rates indicated
above subject to an overall ceiling of Rs.1500/- in ‘A’, ‘B1’ and ‘B2’ class
cities, Rs.750/- in ‘C’ class cities and Rs. 450/- in unclassified areas.

• Reimbursement of lease maintenance expenditure

The expenditure incurred by the executives on repairs/maintenance

alteration carried out in the leased premises occupied by them may be
reimbursed subject to the following conditions:

i. The repairs/maintenance/minor alterations carried out are essential

and the landlord is not agreeable to meet the expenses thereon subject to
the conditions that no alterations in the premises will be undertaken
without the specific written consent of the landlord.

ii. The total amount to be reimbursed in a year commencing from the

date of operation of the lease shall not exceed the actual rent of the
premises for one month or the normal ceiling limit of house rent for the
leased accommodation as may be applicable at the time of submission of
the claim whichever is lower. The time of submission of the claim, should
however, relate to the lease year to which the claim pertains.

iii. Reimbursement of expenses on account of purely maintenance work

like, white/colour washing/distemper, painting/polishing of wooden fittings
will be made once in a period of two years only for the same premises.
 43

iv. Expenses incurred within 3 months of the date of occupation or in the

three months preceding the termination of the lease should not exceed
Rs.100/-. If it exceeds this limit, the excess amount shall not be
reimbursed. Renewal/extensions of lease shall be deemed to be in
continuation of the earlier lease for this purpose. In cases of those who
superannuate/resign wherein at the time of incurring maintenance
expenditure the period preceding the termination of lease exceeds three
months but falls short of one year, the actual expenses on
repairs/maintenance for the full year will be payable subject to the ceiling
as per actual lease rent/entitlement whichever is lower.

v. Reimbursement of expenses incurred by the executives will be made

on the basis of a certificate in the Performa supported by the details of the
expenses along with the dates on which repairs /maintenance etc. were
carried out.

vi. The cost of bulbs/ tubes will not be reimbursed.

vii.The reimbursement of expenses ion these accounts will be made twice

in a year i.e. in June and December unless the expenses incurred amount
to half of the full entitlement or more.

viii. The above provisions will also be applicable mutatis mutandis to

the accommodation leased by the company.

• General :

i. Where both husband and wife are employees of the company and
posted at the same station, HRA is admissible to both of them as per
their individual entitlement subject to the prescribed ceiling limit,
without production of rent receipt/municipal assessment of rental value.
However, HRA is not admissible to both, if one of them has been
allowed company leased accommodation.
 44

ii. HRA is not admissible to employees who continue to occupy

company/government accommodation unauthorizedly i.e. after the
allotment of accommodation allotted ton them.

iii. Unless otherwise specified in these rules, the payment of HRA is

governed by the relevant government of India rules and procedures
issued from time to time.

iv. For the purposes of these rules, the term ‘pay’ in addition to basic pay
includes special pay, personal pay, deputation (duty) allowance and
non-practising allowance.

13. House rent recovery

• Recovery of rent for accommodation leased by the company will be at the rate
of 10%of pay.

• In respect of employees residing in company owned/arranged accommodation

the rates of house rent recovery will be as detailed below. Company arranged
accommodations ate those which are specifically notified by the corporate
office and does not include leased accommodation.

• It may be niticed from annexure – III to the above referred letter of govt. of
India that ranges of living areas corresponding to different types of
accommodation are overlapping. It has also been decided that no
additions/alterations of structural charsceter With a view to ensure uniformity
in classification of accommodation and determining the flat rates of license
fee, following classifications may be followed.

• It has also been decided that no additions/alterations of structural character

may be carried out in residencies at the request of the allottees. Such
additions/alterations, if considered necessary, may be carried out in all similar
residencies in a standardized manner and no additional license fee or charges
mey be recovered from the allottees for such additions.
 45

• Normally, water and electricity charges are payable by the allottes to the local
bodies. Where, however, such charges cannot be recovered from the allottees
due to non-availability of separate motors etc., this will continue to be
recovered by the electrical appliances, air conditioning appliances etc., would
also be recovered from the allottees, if issued.

• The living area of the quarters indicated in annexure III has been assessed on
the basis of the following area of the bulk of general pool quarters have been
constructed over a long period of time. However, there may be cases, where
the living area of the quarters may be slightly less than the minimum specified
or the relevant type or slightly more than the maximum specified. In such
cases, license fee may be recovered on the basis of classification of the types
of accommodation and based on the lowest or highest rates depending on the
lower living area or higher living area of the quarter and in such cases, the
license fee may be fixed on a provisional basis and such anomalies brought to
the notice of the directorate of estates indicating the type of accommodation,
plinth area, living area, year of construction and number of rooms available
etc., so that such cases can be considered and decision taken.

14. Travel and daily allowance (TDA) rules

The “BHEL traveling and daily allowance rules” will be applicable to all regular
full time employees of the company including stipendiary trainees other than
apprentices i=under the apprentices act,1961.

“Traveling allowance” means an allowance the employee draws in connection

with the company’s work.

CONDITIONS:

• Traveling allowance will normally be admissible by the shortest route.

However, the controlling officer may relax this condition in exceptional
circumstances.

• Charges for reservation and telegram charges for securing reservation, if

charged by the railways, will be reimbursed. Agency charges paid to
travel agents will be reimbursed subject to a maximum of Rs. 15/- against
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a voucher for each journey, if the employee purchases tickets through

travel agents.

• Employees who travel by rail should indicate the ticket number in their TA
claims.

• Non-availability of reservation by train is not an acceptable reason for not

performing the journey connected with official work.

• Executives of the rank of E.D. and above are entitled to travel by the
executive class on the airbus routes operated by the Indian airlines on
tour.

• Executives in the pay scale of E4 and above can travel by air while on
duty. In other cases, sanction of competent authority should be obtained.

• Employees sent for training in India should not be permitted to travel by

air till further orders.

• Journeys by road include journeys by steam launch or other sea bound

vessels. Where journeys are performed by road between places
connected by rail, the road mileage as calculated will be limited to rail fare
as applicable. Where journeys are performed by road between places not
connected by rail, the road mileage as calculated will be limited to the
notional fare by the entitled class.

15. Lodging in guest houses

• Accommodation charges are payable by the employees when they stay in the
company’s guest houses and they will be paid daily allowance as ‘with
lodging’. In case of stay at govt. or other public sector undertakings’ guest
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houses with which BHEL has reciprocal arrangements at identical rates, daily
allowance will be paid as ‘with lodging’.

• Employees staying at govt/public sector undertaking’s guest houses with

whom BHEL does not have any reciprocal arrangements, will be paid daily
allowance as applicable for the station as per rules. In addition, they may be
reimbursed the actual lodging charges paid by them on production of bills.

• The room rent for stay while on tour in guest houses maintained by the
company is settled by the employee will be reimbursed on submission of T.A
claims along with the receipts of room rents. In addition D.A. as applicable for
the station will be paid.

• The room rent for the period of stay may be debited to the unit to which the
employee belongs. In such cases, the following procedure will be followed:

• The guest house will prepare the bill towards the room rent in triplicate and
obtain the signature of the employee on the original and the copies. The bill
will indicate the employees’ division, staff no., period of stay and it will be
retained by the guest house, second copy will be sent to the unit finance
department and the original will be given to the employee concerned.

• Employees are not expected to stay in the guest house of commercial

concerns other than public sector undertakings.

16. Pay fixation rules

• These rules may be called BHEL Pay Fixation Rules.

• Pay on initial appointment:

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The initial pay of an employee appointed to a post will be fixed normally at the
minimum of the time scale of the post to which he is appointed. Exceptions to
this rule are given in Annexure I. Higher initial pay may, however, be granted
at the discretion of the management in deserving cases.

• Pay fixation on promotion:

If an employee is drawing pay at the maximum of the scale and is promoted,

his pay will be increased notionally by adding one increment and then fixed at
the next above stage in the higher scale. However, where an employee has
already been given stagnation increments, no notional increment is to be
added in such cases and pay may be fixed at the next higher stage to the pay
drawn in the lower post, including stagnation increments. If an employee had
previously officiated in the same scale, or had been promoted on the last
occasion and the period for which it has been drawn should be taken into
account for the purpose of drawal of increment.

• Treatment of special pay/personal pay on promotion:

Where special day has been given in lieu of higher grade, it should be taken
into account for the purpose of fixation of pay. Special pay which is granted as
an incentive for specific purposes under the company rules and which forms
part of basic pay under these rules is also similarly taken into account for the
purpose of fixation of pay on promotion subject to rules prescribed therefore.

• Drawal of increment

Annual increment will be drawn in a time scale on completion of one year’s

satisfactory service.

• Removal of anomalies in pay fixation:

Where an employee promoted to a post draws a lower arte of pay in that post
than another employee junior to him in the lower grade and promoted
subsequently to the same or identical higher post, the pay of the senior
employee, in the higher job, should be stepped upto a figure equal to the pay
fixed for the junior employee in that higher post.
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• Reversion to lower grade/post on disciplinary grounds

i. In case of reversion of an employee from a higher grade/ post to a

lower grade/post, the fixation of pay will be done in the manner decided by
the authority ordering such reversion and based on government rules
framed from time to time.

ii. these rules inter – alia, provide that the disciplinary authority may allow thw
concerned employee to draw any pay not exceeding the maximum of the
lower grade or post which it may think proper; provided that the pay so
allowed to be drawn should not exceed the pay that would have been fixed
by counting the service rendered in higher grades or post as service in the
lower grade or post.

• Miscellaneous

In the case of employees who are given alternative appointment due to

medical disqualification, the pay last drawn by them should be protected
subject to the condition that it should not exceed the maximum of the scale
applicable to the post to which they are appointed on medical advice.

17. Study leave

i. ELIGIBILTY

• INDIA: study leave is admissible to a regular employee of the company

who has rendered a minimum of 3 yrs service inclusive of
training/apprenticeship period in the company.

• Abroad : (a) study leave is admissible to a regular employee of the

company who has rendered a minimum of 5 yrs of service exclusive of
training/apprenticeship period in the company for courses abroad.

(b) the grant of study leave is further subject to the condition that the
employee:
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I. Is not due to retire within 5 years from the date on which the
employee is expected to return to duty after the completion of the
course.

II. Is not employed on a contract/deputation/temporary or casual

basis.

III. Is not under suspension and no disciplinary proceedings/vigilance

cases are pending against him.

ii. Period of study rule

It is normally admissible for a period of 2 yrs for masters programme and

3 yrs in the cases of doctoral programme once during the entire service of
the employee subject to exigencies of work. The period of study leave
may be extended by maximum pf one year in case of PG programmes
and 2 yrs in cases of doctoral programme on merits of each case. Each
case of study leave abroad will require specific approval of the corporate
Office.

Study leave will not be debited to the regular leave account of the
employee.

iii. Entitlement
• The employee is not entitled to any pay or allowances during the
period of study leave.

• The employee is entitled to the benefit of continuity of service for

CPF and gratuity.

• If the employee chooses to contribute to his provident fund

account during the period of study leave, the company will make a
matching contribution as per rules in force from time to time. The
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contribution will, however, be based on the qualifying emoluments

drawn by the employee before proceeding on study leave.

• An employee on study leave will continue to be covered under

GSLI subject to the condition that he regularly contributes his monthly
share. Company will pay only the risk portion.

• The period of leave will be treated as qualifying service for

eligibility of promotion and earning increment in the relevant company
scale subject to the following conditions.

1. the period of study leave that will qualify for the above
benefits will be restricted to three yrs.

2. successful completion of the higher studies and acquisition

of the related qualifications is a pre – requisite for extending these
benefits.

3. in considering the employee for promotion, the prescribed

procedure will be observed. This will also include the process of
interview where applicable.

4. the employees will be considered for promotion only after

they have joined duty in BHEL on the expiry of study leave and in
the event of selection they will be given notional seniority in the
promoted grade.

5. financial benefit on account of promotion/increment will

accrue earliest from the date the employee has joined his duty on
the expiry of the study leave.
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6. the study leave will not be considered for the purposes of

earning any kind of leave.

7. other conditions as may be relevant, will also be applicable

iv. Procedure

The employees will apply to his Head Of Department (HOD) for

permission to join the course as soon as an advertisement/notification is
issued by the concerned institution in the prescribed form. This will be
examined by the HOD and forwarded to the personnel department with
recommendations for further action.

iv. The sanctioning authority will be the executive director/head of the

unit except for courses outside India or courses of more than two years
duration, in which case prior approval of CMD would be necessary.

v. Each case of study leave will be reported with details to the

corporate personnel department for information and record.

vi. On completion of the course, the employees shall submit to the

sanctioning authority the relevant certificate/degree/paper within 6
months on rejoining the company in case of non – declaration of result
and within 1 month on declaration of result, in support of his having
passed the examination, which should also indicate the dates of
commencement and completion of the course, with the remarks, if any,
of the authority in charge of the course.

vii. In case the employee fails to complete the course satisfactorily,

rejoining the service of the company will require specific approval of the
director/head of the unit or corporate office as the case may be.
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viii. The portion of study leave availed without completing the study will
not be reckoned for the purpose of eligibility for promotion or for earning
increments.

ix. In case the employee fails in the examination/ is unsuccessful in the

study, the entire period so spent will be treated as “dies – non” for
purposes of counting of eligibility period for next promotion. The
employees will also not be eligible for agent of study leave again.

18. Special Incentive and Bonus

• Special incentive payment

Employees who are not eligible for bonus under the payment of Bonus Act
are paid special incentive. The payment on this account is linked to the
performance under the MOU and is regulated as per the categorization of
the company’s performance by the government.

• Annual payment of bonus

Annual payment of bonus in the company is regulated strictly in accordance

with the provisions of the payment of bonus act, 1965, as amended from
time to time. The rates of bonus are computed with reference to and on the
basis of the statements of accounts maintained by the manufacturing units.

19. BHEL Conduct, Discipline and Appeal Rules

i. short title and commencement

• these rules may be called BHEL conduct, discipline and appeal rules,
1975.
• These came into force on 1st sept.,1975

ii. Application

These rules shall apply to all employees except:-

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• Those in casual employment or paid from contingencies;

• Those governed by the standing orders.

iii. General

a. Every employee of the company shall at all times

• Maintain absolute integrity;

• Maintain devotion to duty; and
• Do nothing which is unbecoming of a public servant.

b. Every employee of the company holding a supervisory post shall take all possible
steps to ensure the integrity and devotion to duty of all employees for the time being
under his control and authority.

iv. Misconduct

Without prejudice to the generality of the term “misconduct”, the following

acts of commission shall be treated as misconduct.

• Theft, fraud, or dishonesty in connection with the business or property of

the company or of property of another person within the premises of the
company.

• Taking or giving bribe or any illegal gratification.

• Possession of pecuniary resources or property disproportionate to the

known sources of income by the employee or on his behalf by another
person which the employee cannot satisfactorily account for.

• Furnishing false information regarding name, age, father’s name,

qualifications, ability or previous service or any other matter germane to
the employment at the time of employment or during the course of
employment.
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• Acting in a manner prejudicial to the interests of the company.

• Willful insubordination or disobedience, whether or not in combination

with other, of any lawful and reasonable order of his superior.

• Absence without leave or overstaying the sanctioned leave for more

than four consecutive days without sufficient grounds or proper or
satisfactory explanation.

• Habitual late or irregular attendance.

• Neglect of work or negligence in the performance of duty including

malingering or slowing down of work.

• Damage to the property of the company.

• Interference or tampering with any safety devices installed in or about

the premises of the company.

• Sleeping while on duty.

• Smoking within the premises of the establishment where it is prohibited.

• Gambling within the premises of the establishment.

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• Commission of any act which amounts to a criminal offence involving

moral turpitude.

• Absence from the employee’s appointed place of work without

permission or sufficient cause, etc.

BIBLIOGRAPHY

• Company’s personnel manual;

• Company’s website i.e. www.bhel.com or www.bhelpem.com;

• Book referred: Human Resource Management by C.B.GUPTA.

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